Family Finance: Managing allowance

Family Finance: Managing allowance

SAVANNAH, GA (WTOC) - Do you give your kids an allowance? According to a recent survey from the American Institute of CPAs, more than 60 percent of parents do, averaging about $65 a month.

Financial experts say no matter how much or how little you give your children, you have to set parameters and goals.

The National CPA Financial Literacy Commission says parents have to make sure children understand how they earn their allowance, and how they can lose it. That means kids need to know if certain tasks aren't completed, they won't get their allowance.

Next, make sure you're teaching your child how to save their allowance. According to that same survey, only one percent of parents say their children save their money. You can use allowance as a teaching tool for budgeting.

Lastly, talk to your kids about financial planning, and encourage discussion.

One mother says even though she grew up without an allowance, she plans to reward her children for being responsible.

"I grew up without having an allowance, I just had chores and things that we had to do but in exchange for that we got gas in our car and just some of  the extra stuff we normally wouldn't have gotten. It will be an exchange, if  you do your chores and keep good grades. I'm pretty sure my husband and I will want to give them the world," Desiree Duncan said.

The following websites allow you to manage your child's allowance.

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